We see the mass market share gain as a testament to management's pursuit of the premium mass segment and think the VIP segment could see sustained GGR as management highlighted it aims to enhance this business.

Cost control intact on lower trade receivable provisions

2Q17 cost of sales of S$321.3m (-17% yoy; -1% qoq) was lower than our estimate of S$330m-340m as management continued its tight rein on costs.

2Q17 trade receivable provisions of S$14.7m (-73% yoy; -2% qoq) were in line with our expectation of S$15m per quarter.

Management comforted the street that whilst it aims to enhance the VIP business, it remains cognisant of the trade receivable provisions and would like to keep provisions at this level.

Interim DPS of 1.5 Scts; FY17F DPS of 3 Scts intact

GENS announced a DPS of 1.5 Scts for 2Q17, which was a slight surprise as it announced its interim DPS in 3Q16.

Management guided that it will likely uphold this trend of announcing dividends every half-year. Hence, the final dividend would be in 4Q17.

Lifting FY17-19 adjusted EBITDA by 9.7-11.0%

As we have been too conservative in our VIP win rate assumptions for FY17F-19F, we now increase our forecasts to 2.9% vs. 2.75% previously.

We have also toned down our operational cost estimates as we were previously too aggressive in forecasting other costs.

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